Tech Stocks Drag S&P 500, Nasdaq Lower Amid Iran Sanctions Fears

The S&P 500 and Nasdaq indices ended lower on August 24 due to declining tech stocks. The drop in tech stocks was attributed to US economic pressure against Iran, which led to a possible expansion of sanctions on countries doing business with the country.

Chip stocks, including Nvidia, Micron Technology, and Broadcom, were among those that sold off, dragging the Philadelphia SE Semiconductor index lower. The S&P 500 Information Technology index also fell due to these declines.

The move against tech stocks was further exacerbated by growing political opposition to AI data centers. Texas Governor Greg Abbott delivered a stark warning to the industry, stating that companies had 'dug their own grave' and deserved the backlash they were facing for failing to win community support.

Financials, however, gained, with JPMorgan Chase up 1.4% and Visa up 3%. These gains helped keep the blue-chip Dow afloat, which rose by 140.15 points or 0.26% to 53,417.16.